- Net Income Decline: Q3 2025 inflation-adjusted net income fell 39.7% to ARS 38.1 billion, with ROE at 4.7% and ROA at 0.7%.
- Loan and Deposit Growth: Private sector loans rose 6.7% (11.39% market share), while deposits increased 10.2% (10.09% market share).
- Capital and Guidance: Capital ratio at 16.7%, with 2025 guidance targeting 45-50% loan growth and 30-35% deposit growth, and 2026 ROE in mid to low teens.
- Fee Income Surge: Net fee income jumped 37.5% to ARS 137.1 billion, offsetting a 6.6% drop in net interest income (ARS 585.5 billion).
- Asset Quality and NPLs: NPL ratio at 3.28% (below system average), with NPL coverage expected to stay at 98-100% in 2025, peaking by 2026.
Loan and Deposit Growth
The bank's total loans to the private sector grew by 6.7%, with a consolidated market share of 11.39%, while deposits increased by 10.2% in real terms, reaching a market share of 10.09%. BBVA guided for 45-50% real loan growth year-over-year in 2025, mainly driven by companies and dollar-based credits, and deposit growth of around 30-35%.
Asset Quality and Capital Levels
The NPL ratio stood at 3.28%, below the system average. The bank expects asset quality to deteriorate in the fourth quarter due to high interest rates but anticipates an improvement in 2026. BBVA aims to stabilize its capital ratio around 17% by the end of 2025. The risk-weighted assets decreased in Q3 mainly due to the valuation of public sector debt.
Valuation and Outlook
With a Price-to-Tangible Book Value (P/TBV) of 1.75, the market is pricing in a certain level of growth for BBVA Argentina. The bank's guidance for an ROE in the high single digits in 2025 and mid to low teens in 2026 suggests potential for improved profitability. Analysts estimate revenue growth of 14.4% for next year. The Dividend Yield stands at 1.27%, providing some support to the stock.
Management's Expectations
The bank's management expects the challenging environment to continue in Q4 2025 but anticipates an improvement in 2026, with a focus on driving activity, maintaining operational efficiency, and generating sustained value for shareholders. As management stated, they are focused on "driving activity, maintaining operational efficiency, and generating sustained value for shareholders," indicating a positive outlook for the bank's future performance.